Utilities push ahead with capital spending despite slumping sales due to coronavirus

摘要

US utility companies are largely sticking with their capital spending plans in the face of the economic downturn fueled by the coronavirus pandemic that is weighing on electricity sales across much of the country. Of 44 investor-owned utilities analyzed in a new report from Regulatory Research Associates, a group within S&P Global Market Intelligence, all but eight have maintained or increased their forecasts for capital expenditures through 2021, including four that have expanded spending plans more than 40% since the second half of 2019. Utility executives say that despite the slowdown caused by efforts to stem the spread of coronavirus, continued investment is needed to maintain reliability and to capitalize on the shift to cheaper and cleaner energy resources. At ALLETE, which boosted its two-year forecast 48% to $1.38 billion, much of the increase is driven by investments at ALLETE Clean Energy, a nonregulated subsidiary that is developing renewable energy projects to sell power to utilities and companies outside of the energy sector, said Vincent Meyer, director of treasury and investor relations. "It has a lot to do with ... where the country's going and the energy landscape that's changing out there," Meyer said of the spending increase. "It's to meet that, and there's investment and growth opportunity that comes with that if you do it the right way."